Business & Economy

Indonesia lifts ban on palm oil exports

Jakarta, 23 May (EFE).- Indonesian authorities on Monday ended a ban on palm oil exports, a move that was taken almost a month ago to compensate for a lack of domestic supply and soaring prices.

Indonesia issued the ban in April amid the war in Ukraine to safeguard domestic supplies of palm oil, but as the world’s leading producer of the popular vegetable oil, the move exacerbated global inflation.

In a statement, the Indonesian president said last week that the national supply of palm oil had reached 211,000 tons in April, enough to cover the average monthly demand which amounts to some 194,000 tons.

“In March, before the export ban, our supply only reached 64.5 thousand tons,” President Joko Widodo said.

The price, which was around 19,800 rupees ($1.35) per liter before the ban, has dropped to between 17,200 and 17,600 rupees.

“Even though exports are open, the government will continue to monitor closely to ensure supplies are still met at affordable prices,” the president continued.

Widodo added that the well-being of the 17 million people who work in the palm oil sector in the country was of his government’s concern.

Indonesia produced more than 46 million tons of palm oil in 2021, of which 74% was exported, while Malaysia, the world’s second-largest producer, reached 24.2 million tons and exported 64%.

Inflation, which first reared its head during the Covid-19 pandemic as a result of supply chain disruptions, has recently rocketed on a global scale due to the ongoing war in Ukraine which started in late February with Russia’s invasion. EFE


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